Ashland Hardware Sale FinalizedSeptember 16th, 2013 | Category: Industry News
Newell Rubbermaid Inc. and Nova Capital announced the closing of the sale of Newell Rubbermaid’s hardware business, which includes the Amerock®, Ashland®, Bulldog® and Shur-Line® brands, to Nova Capital.
“What we do is the same, we’ll just be able to do things bigger and better. Newell Rubbermaid is a great company, but it was focused on other segments so this is a good opportunity,” Allison Guilfoyle, marketing services manager for Ashland, tells DWM magazine.
According to a statement from Newell Rubbermaid, “The transaction provides Newell Rubbermaid with a more cohesive and focused portfolio of brands in five core business segments. As previously announced, gross proceeds from the transaction were $214 million, which includes the retention of accounts receivable. The company will receive after-tax cash proceeds of approximately $175 million.”
“Nova is committed to targeted investment in these businesses to drive future growth. Our proven track record of combining operational and financial expertise is well established and has consistently added value to acquired businesses,” says David Jacobs, Nova Investment Partner. “This collection of strong brands and long standing channel partnerships is well positioned to capitalize on the up-turns in the U.S. housing, home improvement and consumer markets.”
Nick Morrisroe, formerly of Newell Rubbermaid, will continue to serve in his role of vice president and general manager for the combined hardware businesses. David Jacobs and Richard Lobo have joined the boards of the businesses as Nova’s investment partners, while Ronald Foy of Nova has joined as an operating partner.
The transaction was initially announced in early August, with Rothschild acting as financial advisor for Newell Rubbermaid.
Nova Capital says the acquisition was funded through a newly established fund with equity provided by its limited partners, including Nova and secondary funds managed by HarbourVest Partners LLC and Landmark Partners.